Developing a voice experience for your brand or business. Advances in speech recognition, language processing and machine learning are converging to enable voice user interfaces. We are transitioning from touch to voice and it has significant implications for marketing.

1. Finding Your Voice
Developing a Voice Experience for Your Brand/Business
ADMA Global 31 August 2018
@johnbatistich

2. 1. Technologies Converging
2. AI Platforms
3. What and How
4. Behaviours of Early Adopters
5. Potential for Voice Commerce
6. Use Cases
7. Marketing Implications
8. So What? Nine Predictions
9. Now What? Nine Actions
Agenda

3. Voice and gestures are our most natural communication
interface.

4. Spoken Language
100K Years
Print
575 Years
Text to
Speech
80 Years
AI Assistants
6 Years
Speech
Recognition
50 Years
Smart
Phone
11 Years
Source: Brad Abrams and Guillaume Laforge Google Cloud Next 17
Interactive
Voice
25 Years
Writing
5K Years
Typing
150 Years
Word
Processor
40 Years
Chat Bots
8 Years
Internet
30 Years
Dictation
Software
20 Years
Computers
70 Years
History of Communication Technologies

5. “More efficient and often more convenient
than typing, voice-based interfaces are
ramping quickly and creating a new
paradigm for human-computer interaction”
Mary Meeker KPCB 2018

6. Advances in speech recognition, language processing and
machine learning are converging to enable voice user
interfaces. We are transitioning from touch to voice and it has
significant implications for marketing.

9. The largest and most disruptive companies on the planet are
investing in AI in a voice race.

10. Market Capitalisation
$1.06T $943B $862B $846B $446B $335B
HyperGiants Scaling AI Platforms

12. “Our 'North Star vision' with Alexa is to
recreate the Star Trek computer on the
Enterprise, which could accurately answer
just about any question you asked it. Alexa
is primarily about identifying tasks in the
household that would be improved by
voice. (For shopping) Alexa is good for
reordering consumables, where you
don’t have to make a lot of choices.”

18. Alliances Being Formed
+
Alexa and Cortana will be
able to understand each
other
+
OK Google, reorder from
Walmart
OK Google, ask eBay to
find me…
+

19. Apple Siri
iPhone 4s
November 2011
Microsoft Cortana
Windows 10 Desktop OS
November 2015
Google Assistant
Pixel Smartphone
October 2016
AU AI Assistant Releases
Apple
Homepod
December 2017
Amazon Echo
February 2018
Microsoft Cortana
Smartphone App
March 2017
Google Assistant
Home
July 2017
Google Assistant
App
August 2017
Samsung Bixby
Samsung Galaxy S8
August 2017

20. The AI Platform ecosystems are scaling

21. Source: VB Profiles. Designed by Dan Miller, Derek Top & Nicolas De Kouchkovsky Sept 2017
AI Assistant Ecosystem

22. Alexa Platform Partners

23. Accuracy
Improve algorithms to better please
consumers and anticipating needs
Source: Adapted from Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018
AI Platforms Will Need to Build Trust
Alignment
Manage conflict of interest balancing
customer trust and commercial
opportunities
Privacy
Giving up personal information for
hyper convenience creates
exposure

24. There are great expectations for rapid adoption

25. Unit Purchases Accelerating to +56M in 2018
Source: Canalys Estimates & Forecasts Smart Speaker Analysis December 2017
7
33
56
2016 2017 2018E
Unit Purchases (Millions)

26. US Household Penetration to 75%
Source: Gartner Edison Research 2017
7%
75%
2017 2020
US Households with AI Assistant (%)

27. 30% of Searches Without a Screen
Source: Gartner
10%
30%
Q1 2018 2020
Non Screen Searches (%)

28. $1.80
$40
$5
2017 2022
Voice Enabled Sales US & UK to $45B
Source: OC&C 2018
Sales Made Through AI Assistants (US$ Billions)

29. AU Adoption to Accelerate to 3M by 2022
Australian Households (Millions)
Source: Telsyte
0.5
3.0
Q1 2018 2020

30. How does VX work?

31. Fallback
The purpose
of your
conversation
The actual
question we
ask
The answers
we receive to
our expressed
intents
The things
we are
talking about
The responses we
receive when our
intents are not
understood.
Answer updates
coming.
Skill Intent Entities Responses
A New Marketing Language
Wake
Activate your
AI Assistant
with a Wake
Word

32. High Level Process
User
Peripherals
Voice
Interface
Intent
Processing
Intent
Detection

33. Skills Enable Responses = Utility = Frequency
Alexa Skills Available
130 6068
25000
35000
45000
2015 2016 Oct-17 Apr-18 Aug-18
Source: Company Reports. Business Insider. Voicebot Consumer Adoption Report January 2018
25784
8982
3118
Skills Available by Market (Jan 2018)

34. “As speech recognition
accuracy goes from say, 95%
to 99%, all of us will go from
barely using it today to using it
all the time. 99% is a game
changer”
Andrew Ng Former Chief Scientist Baidu

35. How AI enabled Voice Assistants create value?

36. Brand Provides Platform
Listing and promotional fees
Product information
Innovations tailored to consumers’ needs
Knowledge about product category
Platform Provides Users
Customised recommendations
Automated routine purchases
Convenience and savings
Reduced complexity
Continual scanning for better ideas
Users Provides Platform
Payment for goods
Information on product, preferences, purchases and use
Information on price sensitivity, risk tolerance, privacy expectations
Loyalty in exchange for good recommendations
How AI enabled Voice Assistants create Value?
AI Platform UsersBrands
Platform Provides Brand
Virtual shelf space
A single channel for marketing, sales and service
Data on consumer preferences, purchases and media exposure
Payment for goods sold
Product fulfilment
A trust halo

37. AI Platforms Virtuous Cycle for Users
Use
Starts to helps the
user run their life
and home
Navigates
Complexity.
Provides
Convenience
Learns user
criteria and
trade offs
Delivers higher
utility
Increase
frequency and
type of use
Better anticipates
needs
High levels of
loyalty
Captures more share of
spend taking a margin &
earning relevant voice
search media revenue
Purchases Assistant.
Installs. Builds Profile

38. “Voice is the new operating
system. Brands are disadvantaged
because there is no way for them to
show the investments they’ve made
[in the] online [world].Brands will not
matter at all because of voice
[searches].”
Scott Galloway
Professor NYU. Founder L2.

39. What can we learn from early adopters?

40. Why: In-Home Use Frequency
Source: Voicebot Consumer Adoption Report January 2018
26%
34%
35%
38%
41%
41%
41%
47%
50%
52%
58%
66%
69%
71%
85%
90%
91%
12%
18%
20%
30%
24%
23%
26%
30%
27%
31%
39%
48%
48%
52%
69%
76%
73%
2%
8%
6%
21%
10%
10%
8%
15%
5%
11%
15%
25%
26%
24%
41%
42%
33%
Make a Purchase
Message Someone
Access Calendar
Control smart home device
Listen to Podcast
Call Someone
Check Traffic
Use Skill or App
Find Recipe
Play Game Answer Trivia
Listen to News
Set an Alarm
Listen to Radio
Set a Timer
Check Weather
Listen to Streamed Music
Ask a Question
Ever Tried Monthly Daily

41. Voice Use Cases Using Mobile In-Store
17.6%
20.8%
25.5%
29.5%
31.1%
Source: Voicebot Voice Shopping Consumer Adoption Report May 2018
Locate a product
Learn about discounts or deals
Compare products
Get help
Self checkout

42. Where: Household Locations
Source: Voicebot Consumer Adoption Report January 2018
46%
41%
37%
11%
6% 6% 5%
3%
Living Room Kitchen Bedroom Home Office Bathroom Garage Dining Room Work Office

43. Frequency of Use
Source: Voicebot Consumer Adoption Report January 2018
12.7%
23.2%
28.6%
21.4%
12.7%
Never/Rarely Monthly 1-2 Times Per Day 3-5 Times Per Day +6 Times Per Day

44. Source: Voicebot Consumer Adoption Report January 2018
Why Some Consumers Have Not Purchased
Not Interested,
38%
Smartphone
Delivers, 21%
Privacy
Concerns,
16%
Plan to Buy,
12%
Too
Expensive, 9%
Other, 4%

45. What: US User Market Shares
Source: eMarketer April 2018
Amazon,
60.8%
Google,
32.9%
Other,
14.0%
Amazon,
66.6%
Google,
29.5%
Other,
8.3%
2018E 2020E

46. What: Global Market Shares
Source: Canalys
Google,
36.2%
Amazon,
27.7%
Others,
17.3%
Alibaba,
11.8%
Xiaomi, 7.0%
Q1
2018

47. Could voice enable commerce?

48. Voice Payment Adoption
Source: BI Intelligence
8%
10%
14%
19%
24%
31%
2017 2018E 2019E 2020E 2021E 2022E

49. Voice Commerce Likes & Dislikes
19%
21%
27%It’s hands free
I can multi-task
It’s faster to get results
Likes
21%
23%
32%
Dislikes
Not comfortable
Don’t trust payment
There is no screen
Source: Voicebot Consumer Adoption Report January 2018

50. Voice Commerce Post Purchase Actions
24%
36%
39%
39%
80%Satisfied with voice shopping experience
Shopped again with same retailer
Shared positive experiences with friends
More favourable to retailer
Spent more money
Source: PWC 2018

51. Use Cases

52. “Alexa open Tide”
“Alexa, ask Tide how do I remove red wine stains”
“Alexa, ask Tide how do I remove coffee stains”
“Alexa, ask Tide to send the instructions to me via text message”
“Alexa, buy some Tide”

53. “Alexa open Starbucks”
“Alexa, ask Starbucks to order my regular coffee”

54. “Alexa call the office”
“Alexa keep my maximum speed at 60km an hour”
“Alexa direct me to…”
“Alexa play the radio…”
“Alexa order me a coffee from my local Muffin Break”

55. “Alexa, order room service. I would like…”
“Alexa, turn on the lights”
“Alexa, set alarm for…”
“Alexa, notify housekeeping I have…”
“Alexa, ask for hotel information”
“Alexa, call the front desk”
“Alexa, play music”

56. “Alexa, ask Flight Centre…”
“...for the cheapest flight deal to Bali.”
“...for the latest business class deals to London.”
“...for a flight to Sydney with Virgin Australia.”
“...find me deals to Singapore.”

57. "Alexa, ask Melbourne Transport...”
When is the next train from Balaclava to Flinders Street
When is the next train from Balaclava
Train departing after six thirty in the afternoon
Train departing tomorrow
Train departing tomorrow after eight thirty
Train departing on Sunday
Train departing next Monday
What are the facilities for Flinders Street station”

58. “Alexa, ask Uber for a ride”
"Alexa, ask Uber to order an Uber Black.”

59. Flight schedule
"Alexa, ask Qantas what time is my flight"
"Alexa, ask Qantas when do I arrive"
Flight status (within 24h from departure)
"Alexa, ask Qantas what's my flight status"
"Alexa, ask Qantas is my flight on time"
Flight duration
"Alexa, ask Qantas how long is my flight"
"Alexa, ask Qantas what's the duration of my flight"
Flight transit time
"Alexa, ask Qantas how long is my layover in Sydney"
"Alexa, ask Qantas what's my transit time"
Qantas points balance
"Alexa, ask Qantas what's my points balance"
"Alexa, ask Qantas how many points do I have"
Frequent Flyer status
"Alexa, ask Qantas what's my membership status"
"Alexa, ask Qantas how many status credits do I have"

60. “Alexa, open Village Cinemas”
"Alexa, ask Village Cinemas what's on tonight?”
“Alexa, ask Village Cinemas when is Pitch Perfect on tomorrow at Westfield?”
“Alexa, ask Village Cinemas for kids movies.”
“Alexa, ask Village Cinemas when is Black Panther showing in Gold Class?"

61. "Alexa, ask Domino's to place my order"
"Alexa, ask Domino's to order my usual"
"Alexa, ask Domino's to track my order"

62. “Alexa, open Dimmi”
“Alexa ask Dimmi to make a booking at….. on Saturday night at 7pm for
four people”
“Alexa ask Dimmi to confirm the reservation”

63. “Alexa open Taste”
“Alexa ask Taste for the recipe of the day”
“Alexa ask Taste to filter recipes by time and amount of serves”.
Ask for the amount of serves a recipe has.
Ask for the time it takes to cook a recipe.
You can add and remove ingredients interactively.
Ask for the surprise recipe.
Share this recipe via SMS.
Ask for the amount of an specific ingredient”

64. “Google open Woolworths”
“…Build a shopping list”
“…Remember my favourites”
“…Edit my list wherever, whenever”
“…Use my shopping list in-store or online”

65. “Alexa open Airtasker”
“Alexa, ask Airtasker to find me a gardener”
“Alexa, ask Airtasker to find me a cleaner”

66. “Lucy, I am in pain”
“Lucy, I need a nurse”

67. “We basically envision a world where Alexa is
everywhere.”
Priya Abani
Amazon’s director of Alexa Voice Services Enablement

68. What does this all mean for Marketing?

69. Retention
oRoutine re-evaluation of purchase will
force incumbent brands to constantly
justify their positions
oCan’t be bothered to explore alternatives
if a brand is performing adequately
oLess switching if habit developed
Source: Adapted from Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018
Acquisition
oBecomes even more of a science and will focus on the platform
oProduct placement and recommendations on AI platforms are inevitable
oListing fees and bid preferential positions will exist
oCompanies will essentially reallocate to the platforms what they spend today on
media, listing fees and retail commissions
Satisfaction
oPlatform drives satisfaction over brand
oAble to satisfy and predict customer’s needs
better than the customers themselves
oFigure out the trade-offs consumers are
willing to make
Marketing Implications

70. So what?

71. Leading edge Innovators
Click and Touch
Keyword search
Mobile optimisation
Web and Mobile experience
Omni-channel
Marketing influenced Commerce
Campaigns
Touchpoint Availability
Brand relationship
Scaling Early adopters
Speech
Voice commands
Voice optimisation
Voice experience (VX)
Omni-present
Alexa Influenced Retail (AIR)
Skills
Mental Availability
AI Assistant relationship
Expected Shifts

72. Now what?

73. 1. Two AI platforms will dominate (2X US/Europe 2X China)
2. Most consumers will use only one assistant incorporated into their homes, cars and mobiles
3. The platform will get better with use, understanding habits and preferences to drive increased usage in a
self-reinforcing cycle
4. AI platforms become a powerful marketing channel, sales and distribution channel, and fulfilment and
service centre
5. AI platforms will have a lot of influence over prices and promotions and the consumer relationship
6. Consumers will shift allegiance from trusted brands to trusted AI assistants
7. There will be very little customer churn or switching
8. AI assistants will win customers’ trust and loyalty better than any previous marketing technology
9. Owners of platforms will drive unrivalled growth and profitability
Source: Adapted from Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018
Nine Predictions

74. Nine Actions
1. Get curious. Become a user
2. Dedicate some Technical resources to explore
3. Review the quality of your data structure
4. Experiment with Use Cases
5. Partner with AI Assistant Owners. Invest in understanding the algorithms the platforms use to
recommend and choose products, including how they weight each brand for each consumer
6. Anticipate and test platforms as new communication channel
7. Build relevant skills for your brand
8. Physical retail will be more important for discovery and learning
9. Improve your direct customer relationship. Include voice as part of future personalisation.

75. Let’s Talk
@johnbatistich
jsbatistich@bigpond.com
John Batistich
jbatistich

76. Sources
Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018
Brad Abrams and Guillaume Laforge Google Cloud Next
VB Profiles. Designed by Dan Miller, Derek Top & Nicolas De Kouchkovsky Sept 2017
Canalys Estimates & Forecasts Smart Speaker Analysis December 2017
Gartner Edison Research 2017
Voicebot Consumer Adoption Report January 2018
Jon Bird Forbes
Business Insider
Telsyte
PWC
Yahoo Finance